REGISTERED NUMBER: 02182793 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2025

FOR

AMG INDUSTRIES PLC

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

19

DIRECTORS:

Mr A M Goldstein

Mr E Goldstein

REGISTERED OFFICE:

Nevills Dock

Llanelli

Dyfed

SA15 2HD

REGISTERED NUMBER:

02182793 (England and Wales)

AUDITORS:

Aspen Waite Limited

Chartered Accountants and Statutory Auditors

Rubis House

15 Friarn Street

Bridgwater

Somerset

TA6 3LH

The directors present their strategic report of the company and the group for the year ended 31st December 2025.

REVIEW OF BUSINESS

The closure of Port talbot blast furnace, meant its sister plant in Llanelli had nowhere to take its scrap material, consequently the company tendered to manage/(buy) this scrap Closure meant that Port talbot was no longer making steel therefore had no demand for scrap. Therefore, the company became unable to supply and had to look for alternatives- these included exporting (short sea) to The Netherlands / Spain, at reduced margins.

PRINCIPAL RISKS AND UNCERTAINTIES

Price risk

The group's products are subject to changing market prices at both selling and purchasing levels. It manages this risk by striving to be a low cost producer.

Credit risk

The group has implemented policies that require appropriate credit checks on potential customers before sales are made. The group exercises strong credit control procedures.

Liquidity risk

The group actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions.

Interest rate cash flow risk

The group's policy is to manage its cost of borrowing using a mix of debts.

SECTION 172(1) STATEMENT

The Directors of AMG Industries PLC act in accordance with a set of general duties that are detailed in Section 172 of the UK Companies Act 2006.

Specifically, the Act requires each director to act in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its shareholders as a whole, and in doing so have regard (amongst other matters) to:

- The likely consequences of any decisions in the long term

- The interests of the group's employees

- The need to foster the group's business relationships with suppliers, customers, and others

- The impact of the group's operations on the community and environment

- The desirability of the group maintaining a reputation for high standards of business conduct; and

- The need to act fairly as between shareholders of the group.

This Statement outlines how we are meeting the requirements outlined under Section 172.

Long term decisions:

In assessing the likely consequences of decisions in the long term, we take account of emerging market trends, how these impact on our business model, and we review our strategy considering these risks and uncertainties. The Board does not make quick or irrational decisions; for example, potential acquisitions are carefully considered and due diligence carried out before any final decisions are made. All long-term decisions are taken to represent the best interests of all stakeholders. We do not underestimate the importance of understanding our stakeholder expectations and needs to achieve our strategy and accordingly our long-term sustainable success.

Our People:

The Group culture is led by our employees, and we recognise the crucial role they have in ensuring the success and achievement of business objectives.

The Groups policy is to encourage employee feedback through a constant dialogue with senior management.

We provide an environment that is supportive and caring, which promotes diversity, equity and inclusion, encourages employee career development and ensures employees receive the training and support to be competent in their role.

The Group is committed to providing support and creating awareness for our employee's mental health and wellbeing.

Business Relationships (Suppliers, customers, others):

AMG Industries is the parent company of AMG Resources Limited.

We specialise in the processing and re-cycling of ferrous and non-ferrous metals.

We value our customers highly and have developed and maintained close working relationships. Through these we ensure we give our customers the excellent service they deserve.

We also recognise the importance of building and maintaining strong relationships with our suppliers. It is important to AMG to work with reputable suppliers, who adhere to our Supplier Code of Conduct. It is important to us that our suppliers are paid in accordance with agreed terms for the service they provide.

The Group strives to meet all covenant requirements and payment due dates for finance costs, to enable us to continue to acquire new businesses and expand operations.

The community and the environment:

AMG is committed to maintaining an excellent reputation and strives to achieve high standards. We are selective about who we work alongside to deliver best value while maintaining an awareness of the environmental impact of the work that they do.

The Group has aided several local charities within South Wales. These would include for eg the 'Bennett Foundation', a local charity based in Llanelli, South Wales that raises charitable funds to help disadvantaged, disabled or underprivileged individuals to participate in sport.

Business Conduct and Ethics:

The Board's intent is always to maintain high standards of business conduct and governance in all of the group's operations, which is critical in maintaining our reputation for doing the right thing. Our directors and employees are trained on a range of business conduct principles including:

- Data Protection and Privacy

- Modern Slavery

- Corporate criminal offence

- Anti-bribery and corruption

- Anti-money laundering

The Need to Act Fairly as Between Various Shareholders:

The board governs the company at a strategic level, setting its overall direction and tracking performance against objectives. Its purpose is to assess the impact of the company on all stakeholders, and to drive the greatest benefit for all shareholders. In doing so, it has regard for best practice in board governance, and acting fairly as regards all shareholders is one of the board's core principles.

KEY PERFORMANCE INDICATORS

The directors consider turnover and profitability to be the key performance indicators, and these are reviewed on an ongoing basis throughout the year.

31/12/25

31/12/24

Movement

£

£

Turnover

22,295,786

18,634,764

19.6%

Gross profit

243,717

653,372

(62.7%

)

Profit/(loss) before taxation

(378,891

)

93,882

(503.6%

)

FUTURE DEVELOPMENTS

We will continue with our efforts to maximise efficiencies across operations, whilst evaluating opportunities to strengthen our market offering. Looking ahead, we will aim to return to growth during 2026 and 2027 by focusing on:

- Our strong market presence and awareness;

- Our ongoing focus on Research and Development to improve recovery and processing;

The group continues to receive the support of its affiliated company AMG Resources Corporation USA who see the UK operation as an integral part of the group.

ON BEHALF OF THE BOARD:

Mr A M Goldstein - Director

14th September 2026

The directors present their report with the financial statements of the company and the group for the year ended 31st December 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31st December 2025 (2024; nil)

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2025 to the date of this report.

Mr A M Goldstein

Mr E Goldstein

DISCLOSURE IN THE STRATEGIC REPORT

Disclosures relating to future developments and financial risk management have been made in the Strategic Report.

RESEARCH AND DEVELOPMENT

The group continues to research and develop methodology to extract increased value during the processing of complex mixed metal waste streams.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Aspen Waite Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr A M Goldstein - Director

14th September 2026

Opinion

We have audited the financial statements of AMG Industries PLC (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2025 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibilities outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularity including fraud is detailed below.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the company's regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the group is subject to laws and regulations that directly affect the financial statements, including: the company's constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigation. We identified the following areas as those most likely to have such an affect: environmental licences; employment legislation; health and safety legislation; trade and export legislation; GDPR; anti-bribery and corruption legislation.

International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

Challenging assumptions made by management in its significant accounting estimates in particular: depreciation, provisions for bad debts and provisions for slow moving stocks.;

Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account, and journal entries posted by senior management, Journals tested includes those in during the period and up to the date of the signing of the audit report.

Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;

Ensuring that testing undertaken on both the performance statement, and the Balance Sheet includes a number of items selected on a random basis;

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Auditing Standards (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Waite (Senior Statutory Auditor)

for and on behalf of Aspen Waite Limited

Chartered Accountants and Statutory Auditors

Rubis House

15 Friarn Street

Bridgwater

Somerset

TA6 3LH

14th September 2026

TURNOVER

22,295,786

18,634,764

Cost of sales

(22,052,069

)

(17,981,392

)

GROSS PROFIT

243,717

653,372

Administrative expenses

(885,666

)

(890,573

)

(641,949

)

(237,201

)

Other operating income

175,000

250,000

OPERATING (LOSS)/PROFIT

4

(466,949

)

12,799

Interest receivable and similar income

88,058

81,083

(LOSS)/PROFIT BEFORE TAXATION

(378,891

)

93,882

Tax on (loss)/profit

5

97,657

168,420

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(281,234

)

262,302

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR

(281,234

)

262,302

(Loss)/profit attributable to:

Owners of the parent

(281,234

)

262,302

Total comprehensive (loss)/income attributable to:

Owners of the parent

(281,234

)

262,302

FIXED ASSETS

Tangible assets

7

3,870,333

3,624,017

Investments

8

-

-

3,870,333

3,624,017

CURRENT ASSETS

Stocks

9

3,275,041

1,240,016

Debtors

10

3,052,779

5,031,758

Cash at bank

712,543

321,273

7,040,363

6,593,047

CREDITORS

Amounts falling due within one year

11

(4,588,867

)

(3,516,344

)

NET CURRENT ASSETS

2,451,496

3,076,703

TOTAL ASSETS LESS CURRENT LIABILITIES

6,321,829

6,700,720

PROVISIONS FOR LIABILITIES

13

(497,074

)

(594,731

)

NET ASSETS

5,824,755

6,105,989

CAPITAL AND RESERVES

Called up share capital

14

781,172

781,172

Revaluation reserve

126,961

126,961

Capital redemption reserve

837,500

837,500

Retained earnings

4,079,122

4,360,356

SHAREHOLDERS' FUNDS

5,824,755

6,105,989

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 14th September 2026 and were signed on its behalf by:

Mr E Goldstein - Director

FIXED ASSETS

Tangible assets

7

-

-

Investments

8

5,443,837

5,443,837

5,443,837

5,443,837

CREDITORS

Amounts falling due within one year

11

(3,823,677

)

(3,823,677

)

NET CURRENT LIABILITIES

(3,823,677

)

(3,823,677

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,620,160

1,620,160

CAPITAL AND RESERVES

Called up share capital

14

781,172

781,172

Capital redemption reserve

837,500

837,500

Retained earnings

1,488

1,488

SHAREHOLDERS' FUNDS

1,620,160

1,620,160

Company's profit for the financial year

-

-

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 14th September 2026 and were signed on its behalf by:

Mr A M Goldstein - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1st January 2024

781,172

3,918,899

306,116

837,500

5,843,687

Changes in equity

Total comprehensive income

-

441,457

(179,155

)

-

262,302

Balance at 31st December 2024

781,172

4,360,356

126,961

837,500

6,105,989

Changes in equity

Total comprehensive loss

-

(281,234

)

-

-

(281,234

)

Balance at 31st December 2025

781,172

4,079,122

126,961

837,500

5,824,755

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st January 2024

781,172

1,488

837,500

1,620,160

Changes in equity

Balance at 31st December 2024

781,172

1,488

837,500

1,620,160

Changes in equity

Balance at 31st December 2025

781,172

1,488

837,500

1,620,160

Cash flows from operating activities

Cash generated from operations

1

1,040,931

149,201

Tax paid

-

44,145

Net cash from operating activities

1,040,931

193,346

Cash flows from investing activities

Purchase of tangible fixed assets

(731,773

)

(705,441

)

Sale of tangible fixed assets

-

440,000

Interest received

88,058

81,083

Net cash from investing activities

(643,715

)

(184,358

)

Increase in cash and cash equivalents

397,216

8,988

Cash and cash equivalents at beginning of year

2

315,327

306,339

Cash and cash equivalents at end of year

2

712,543

315,327

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31/12/25

31/12/24

£

£

(Loss)/profit before taxation

(378,891

)

93,882

Depreciation charges

485,456

404,195

Loss on disposal of fixed assets

-

121,756

Finance income

(88,058

)

(81,083

)

18,507

538,750

Increase in stocks

(2,035,025

)

(55,582

)

Decrease/(increase) in trade and other debtors

1,978,980

(113,885

)

Increase/(decrease) in trade and other creditors

1,078,469

(220,082

)

Cash generated from operations

1,040,931

149,201

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

712,543

321,273

Bank overdrafts

-

(5,946

)

712,543

315,327

Year ended 31st December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

321,273

306,339

Bank overdrafts

(5,946

)

-

315,327

306,339

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

321,273

391,270

712,543

Bank overdrafts

(5,946

)

5,946

-

315,327

397,216

712,543

Debt

Debts falling due within 1 year

(1,087,400

)

-

(1,087,400

)

(1,087,400

)

-

(1,087,400

)

Total

(772,073

)

397,216

(374,857

)

1.	STATUTORY INFORMATION

AMG Industries PLC is a private company , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The parent company's own statement of cash flow has not been presented as there are no cashflows in the current or precede year.

BASIS OF CONSOLIDATION

The consolidated financial statements incorporate those of AMG Industries PLC and all of its subsidiaries using acquisition accounting (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transactions provides evidence of an impairment of asset transferred.

The parent company's own statement of cash flow has not been presented as there are no cashflows in the current or precede year.

RELATED PARTY EXEMPTION

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

Preparation of the financial statements requires management to make significant judgements and estimates. The estimates and associated assumptions are based on historical experience and current relevant factors. The assumptions are revised on an ongoing basis and any revisions are recognised in the period in which they are revised. The items in the financial statements where these judgements and estimates have been made include:

TURNOVER

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover comprises revenue earned from the sales of goods. Turnover is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. This is usually on customer acceptance of the goods.

TANGIBLE FIXED ASSETS

Fixed assets are initially measured at cost, previously revalued land is now measured at deemed cost following transition to FRS 102, and subsequently at cost less any depreciation and impairment.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or valuation , less estimated residual value of each asset evenly over its expected useful life, as follows:

Freehold buildings - 10 to 20 years

Plant and machinery, fixtures and office equipment - 2 to 10 years

Assets are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Interest payable in respect of major construction and improvement projects is included in the cost of plant and equipment. Such costs relate to expenditure incurred prior to the project becoming operational.

INVESTMENTS

Investments in subsidiary companies are included in the company balance sheet at cost adjusted for any provision required for impairment in value.

STOCKS

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stocks are stated at the lower of cost and net realisable value and are valued on a weighted average basis. Cost includes all costs incurred in bringing each product to its present location and condition. Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal. Provision is made for damaged, obsolete and slow-moving stock as appropriate.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

RESEARCH AND DEVELOPMENT

Expenditure on research and development is written off in the year in which it is incurred.

FOREIGN CURRENCIES

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All exchange differences on monetary assets and liabilities are taken to the profit or loss account.

Monetary assets and liabilities are translated at the rate of exchange ruling at the date of settlement of the transaction. Non-monetary assets and liabilities are not retranslated at the balance sheet date,

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.